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City Hall, Palo Alto, California'
July 23, 1956:
The Council of the City of Palo Alto met in re;ular ses-
sion on this date at 7:30 P.M., with Vice Mayor Marshall presiding.
Roll call as follows:
Present: Byxbee, Cresap•, Cummings, Davis, Drysdale,
Giffin, Marshall, Mitchell, Navis, Rodgers,
Ruppenthal, Simpson.
Absent: Bishop, Corcoran, Porter.
The minutes of the meeting of July 9, 1956, were approved.
Traffic Supervision Award
The.presentation of an award to the City of Palo Alto for
outstanding achievement in traffic supervision was made to Chief of .
Police Hydie by John.Holstrom, Chief --of Police of Berkeley andeVice
President of the International Association of Chiefs of Police-.
This award was presented by Chief Holstrom in behalf of the Interna-
tional Association of Chiefs of Police.
Abandonment of Easements
This was the time and place for a hearing on the proposed
abandonment of portions of public utilities easements in Lot 106,
Wooster Subdivision, as described in Resolution of Intention No.
2741. It was reported for the record that the Clerk has filed an
affidavit of publication of the notice of this hearing.
The City Engineer' reported that the purpose of the proce-
dure is to abandon unused easements in the Faircourt Subdivision
which is located between Ross and Louis Roads south of Loma Verde
Avenue.
The hearing was declared open. There being no one present
who wished to speak on the matter, the hearing was closed.
Resolution No. 2756 ordering the abandonment of said ease-
ments was introduced, and on motion of Navis and Simpson, was adopt-
ed by unanimous vote on roll call.
Budget - Tax Rate - Sales Tax
This was the time set for a public hearing on the proposed
budget for the fiscal year 1956-57. A notice of the hearing had
been given as provided by law. The hearing was declared open.
Mr. Robert E. Hackley addressed the Council stating that
it appeared to him that the sales tax has such a close connection
with the budget that it should be considered at the same time. He
suggested that, if a sales tax is adopted, consideration be given to
reducing the utility rates instead of the property tax rate. He
asked that action on the budget and tax rate be deferred for further
study of the whole matter.
Councilman Mitchell, Chairman of Committee No. 3, present-
ed the repert for the committee, which hae recommended the budget
for adoption with certain modifications which have been approved
since the preliminary budget was submitted. He advised that the com-
mittee felt that if a sales tax is adopted, it would be wise to re-
duce the property tax, which would offset to some extent the increase
in school taxes. The major changes in the budget as recommended by
the committee were presented in summary form.
In behalf of Committee No. 3, it was moved by Mitchell,
seconded by Navis, that the ordinance adopting the budget for 1956-
57 as recommended by the committee be adopted.
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Councilman Davis brought up the matter of construction of
the new hospital and the need for additional funds for this project,
and stated that he would like to have sales tax revenue, if such a
tax is adopted, used to complete the construction of the hospital
and would therefore question the reduction in the property tax rate
if.a sales tax is put -into effect. Councilman Mitchell pointed out
that the reduction inthe tax rate would not use all of the estimat-1
ed revenue from'a sales tax, and that Committee No. 3 has given some
consideration to the use of some of the sales tax revenue which
would accumulate during the period of hospital construction. Coun-
cilman Drysdale called attention to the additional cost involved if,
provision is made in the core of the Palo Alto -Stanford Hospital for
separate laboratories.; and radiology departments, and stated that he
would oppose the reduction of the tax rate if necessary to provide.
the funds to make it possible to have separate facilities for these
departments: as desired by the doctors.
Councilman Mitchell pointed out that the budget does not.
include the tax rate; that the fixing of the tax rate is a separate
action.
Councilman Cummings suggested that a review of the utility
rate structure be made by a committee in the near future The City
Manager stated that it is wise to review the rate structure and u-
tility earnings occasionally to determine whether a reduction in
rates should be made. The matter was referred to Committee No. 3
for a review of utility rates.
During the discussion of possible uses of sales tax reve-
nue, the City Manager advised that such revenue would be for a dual
purpose; it could be used for reducing taxes and also for capital ex
penditures. He stated that in his estimation there would be sufffl-
cient funds, if, a sales tax is adopted, to reduce the tax rate to 85
cents, and if the Council so desires to use some of the sales tax
revenue to supplement bond money for completion of the hospital.
The City Manager called attention to rising costs of construction,
and advised that around $500,000.00 in additional funds may be need-
ed during the next two years if the hospital is completed as de-
signed.
Councilman Byxbee pointed out that there will be addition-
al operating costs in view of the library program, the development
of new parks and other projects, and called attention to other capi-
tal improvements facing the City such as the South Palo Alto grade
separation. He suggested that the capital improvement program be
continued and that it be reviewed from time to time.
Councilman Byxbee called attention to the development of
industrial areas within the city and their effect on the tax base,
and referred to a recent brochure published by the Chamber of Com-
merce for'promotion:of light industrial development. He pointed out
that the appropriation requested by the Chamber of Commerce.for in-
clusion in the publicity fund of the budget had been ;reduced in the
amount of $1000.00:, and he suggested that the budget be amended to
add $1000.00 to this account or to include it in the Special Prolate,
Fund. Councilman Mitchell pointed out that there are funds from
which a transfer could be made during the year if the Council so de-
sires, without further changes in the budget as now set up.
Councilman Ruppentha'1 called attention to the allowance: of
$2.50 per day on hospital rates for Palo Alto residents which has
been in etfect.for many years, and which was established when rates
were much lower than at present. He moved that Palo Alto residents
be allowed a $5.00 per day rate differential and that the sum' of
$35.,000.00 be added to the budget for this purpose. The motion was
seconded by Drysdale.
Councilman Mitchell suggested that this question be de-
ferred for further study of -various proposals which have been .made
in connection with a rate differential for Palo Alto residents who
are hospitalized.
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After discussion, the motion to amend the budget was lost
by the following vote on roll call:
Ayes: Cummings, Davis, Drysdale, Giffin, Ruppenthal.
Noes: Byxbee, Cresap, Marshall, Mitchell, Navis, Rodgers,
Simpson.
The question of a rate differential or hospitalization al-
lowance for Palo Alto residents was referred to the new standing
committee of the Council, Committee No. 4, for consideration and re-
port.
The hearing on the budget was closed.
Ordinance No. 1700 adopting the budget for 1956-57, as
recommended by Committee No. 3, was then adopted on roll call, with
11 Ayes, Drysdale voting No.
Councilman Mitchell presented the report of Committee No.
3 on the tax rate, the committee recommending that the tax rate for
1956-57 be fixed at $1.17 per $100 of assessed valuation, or in the
event a city sales tax is adopted in Palo Alto and becomes effective
by September 1, 1956, that the tax rate be established at 85 cents
per $100.
The City Attorney pointed out that the Charter provides
that the Council must fix the tax rate by September 1st, and that
there is not sufficient time to give two readings to a sales tax or-
dinance and have it effective by that date.
On motion of Kitchell and Davis, consideration of the tax
rate was deferred to the' regular Council meeting of August 13, 1956.'
Proposed ordinances providing for a city sales tax and use,
tax of 1% were presented. The City Manager reported on meetings of
representatives of the Inter -City Council for discussion of a un1-
form sales tax, advising that the City representatives were not in
favor of a uniform tax ordinance if .he County receives more than 5%
of the revenue collected within cities.
It was reported that the Board of Supervisors approved a
sales. tax ordinance today, to be effective only in t''., event that
all cities in .Santa Clara County agree to give the County 12-% of
the sales tax revenue.
Mr. Allan Isaksen, 816 Colorado Avenue, spoke to the Coun
cll against the adoption of a sales tax, stating that organized la-
bor and the Democratic party are opposed to a sales tax.
After considerable discussion among council members, it
was moved by Mitchell, seconded by Drysdale, and carried that the two
ordinances be accepted for first reading with the provision that the.
sales and use taxes be effective October 1, 1956, and that they be
referred to Committee No. 3 for consideration and report.
Eleanor Park Development
A letter was received from Richard T. Johnson, Acting
Chairman of the Steering Committee of the Eleanor Park Development
Organization, offering to assist the Council in the development of.
Eleanor Park and asking that they be informed of the plan and prog-
ress of the development of this park area.
On motion of Mitchell and Byxbee, the letter was referred
to the City Manager, and it was directed that the letter be acknowl-
edged and that the organization be thanked for their offer.
Annexations to Los Altos and Mountain View
Notices were received from the County Boundary Commission
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of the proposed annexation of certain uninhabited territory owned
by the City of Los Altos, being 18.79 acres of Bay lands near the
extension of San Antonio Road to be used for a sewage treatment
plant site, to be annexed to Los Altos, and of uninhabited territo-
ry known as Wright No. 2, approximately one and one-half miles south
of Palo Alto, to be -annexed to the City of Mountain View.
On motion of Rodgers and Byxbee, these notices were filed.
Bids Yon, Sewage Works Enlargements and Trunk/
Sanitary Sewer Improvements (Project 56-6)
A report -was made by the City Manager on the bids received
on July 19, 1956, for the Sewage Treatment Plant Enlargements, with
the recommendation 'that the low bid of C. Norman Peterson in the a-
mount of'$528,219.00 be accepted, and'on the bids received on the
same date for the trunk'sanitary sewer improvements, with the recom-1
mendation that the low bid of the Fay Improvement Company, with al-
ternate on Item No. 1, be accepted in the total amount of $128,858.-!
30.
On motion of Mitchell and Cummings; and by unanimous vote
on roll call, these bids were accepted as recommended by the City
Manager, and the Mayor was authorized to sign the contracts.
Bids on Storm Drainage Interceptor Facilities
.A report was submitted by the City Manager on the bids re-
ceived on July -20, 1956, on storm drainage interceptor facilities,
Project 56-3, with the recommendation that the low bid of McGuire
and Hester of $133,715.00 be accepted. On motion of Nevis and Mit-
chell, the recommendation was adopted and the Mayor was authorized
to sign the contract for the work, by unanimous vote on roll call.
Bids on Channel Lining& Adobe Creek
The City Manager reported on the bids received on July 20,
1956, for the channel lining of a portion of Adobe Creek, Project
56-10, with the recommendation that the low bid of Clifford `&' Boden-
hamer in the amount of $51,146.00 be accepted. On motion of Mit
chell and Cummings, and by unanimous vote on roll call, the bid was
accepted as recommended, and the Mayor was authorized to sign the
contract.
Bid's .,Nn Game Courts 1n Mitchell Park
A report was also made by the City Manager on the bids re-
ceived on July 20, 1956, for the construction of game courts in Mit-
chell Park, with the recommendation that the low bid of Huettig and
Schromm in the amount of $32,693.00 be accepted. On motion of Drys-
dale and Cummings, the bid was accepted as recommended, and the May-
or was authorized to sign the contract by unanimous vote on roll
call.
Bids on Picnic Areas and Other Work Mitchell Park
The City Manager reported that only one bid was received
for the construction of picnic areas, two sand box play areas, over-�
look and tether ball areas, headers and redrock paving in. Mitchel;.
Park, Project' 55-3. This bid was from Huettig and Schromm in the a-
mount of $18,303.00 and was recommended by the City Manager for ac-
ceptance. On motion of Cummings and Rodgers, the bid was accepted 1
and the Mayor was authorized to sign the contract, by unanimous vote]
on roll call.
Bids on Parking Lots, Cambridge Avenue
The City Manage*' also reported on the bids received on
July 20, 1956, on the construction of two parking lots on Cambridge
Avenue, Project 55-5, without recommendation. He advised that only
two bids were received, one from the Lowrie Paving Company of San
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Francisco in the amount $15,991.10, and.the other from Bauman
Bros.. of San Carlos in the sum of'$16,k55.10; that there were no to
cal'bidders; and that the low bid -exceeded the estimate by 16%.
After discussion of the: desirability of completing these
parking lots before the rainy season, it was moved by Cummings, sec-.
onded by Nevis, and carried by unanimous vote on roll call that the
bid.of the Lowrie Paving Company be accepted and that the Mayor be
.authorized to sign the contract.
Lease of Matadero Flood Basin Lands
A report was made by the City Manager on proposals re-
ceivedat 3:00 P.M. on this date for the leasing of the Matadero
Flood Basin lands. He reviewed the four proposals received from the:
following: Perinsuia.Licensed.Game Bird Club submitted by L. Cedric
Macabee, Bahr & Ledoyen, L. C. Smith Company, and from Milton and
Lawrence Lemos.
The conditions'of the proposal of the Peninsula Licensed
Game Bird Club which plans to develop and operate a pheasant and
duck shooting club and to sub -lease some of the land for farming pur-
poses to the present lessees, Milton and Lawrence Lemos, were re-
viewed and discussed with Mr. Macabee.
After discussion, it was moved by Byxbee, seconded by Ne-
vis, and carried that the City Manager be authorized to negotiate a
contract with Mr. Macabee based on his proposal, with the understand-
ing that the City will be protected with regard to the removal of
fill.
Lease of Boat Works
The City Manager reported that letters had been sent to a
number of people who had expressed an interest in leasing the boat
works inviting them to ,submit proposals, and that two bids were re-
ceived at the time of opening bids, 3:00 P.M. on this date. He re-
viewed the proposals froa-Carl H. Schoof of Redwood City and Angus
C. Clark, Jr., of San Carlos. Both bidders offered a monthly rental
of $50.00, Mr. Schoof for a five-year lease with option to renew,
and Mr. Clark for a ten-year lease. Both proposals contained provi-
sions for the operation and improvement of the boat works.
After discussion, it was moved by Rodgers, seconded and
carried that the City Manag'ar be authorized to interview both appli
cants, determine the actual intent of their proposals, guarantee and
financial responsibility, and negotiate a contract with the applicant
best qualified to operate the boat works and improve the facilities
to the satisfaction of the City.
Fee for Floor -Sanding Contractors
The City Manager recommended that a fee be charged for the
use of unmetered electric service by floor -sanding contractors,
$1.00 for a one-story house and $2.00 for a two-story house.
It was moved by Byxbee, seconded and carried that these
fees be established as recommended.
Resolution for Retiring Employee
A resolution of appreciation to Carl Steffensen on his re-
tirement from City service was presented. It was moved by Byxbee,
seconded and carried by unanimous Vote on roll call that this reso-
lution be adopted.
Hospital Annexation and Construction Program
The City Maanager reported that Stanford University expects
to present a petition to -the Council at its next meeting for the an-
nexation to the City of :Palo Alto of the area on which the new Palo
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Alto -Stanford Hospital and the Stanford Medical School will be lo-
cated, a portion of:which (22.6 acres) will be leased to the City
for Hospital purposes, :,The City Manager advised that the lease
will be based on a letter received from Dr. Sterling, President of
Stanford University,, about a year ago, in which he stated that the
University is willing to lease a site to the City for Hospital pur-
poses fora term of 99 years, at an annual rental of k of the as-
sessed valuation, which is similar to the terms of the existing
lease for the present Palo Alto Hospital site.
The City Manager also reported that the zoning of the
area to be annexed is under consideration, and a new zone to be des,
ignated PF (Public Facilities District) is under consideration for
the zoning of most of the area which will be occupied by the Hospi-
tal and the Medical Center; that Stanford is asking that a small
portion be zoned R-4.
The City Manager advised that Stanford is requesting that
Willow Road -be included in the annexation area so that it will be its
the city limits and subject to maintenance and police patrol by the
City.
It was moved by Mitchell and seconded that the plan as
proposed by Stanford University for annexation of the Hospital and
Medical School area, including Willow Road, be accepted.
It was moved by Davis, seconded by Rodgers, that the mo-
tion be amended to leave out Willow Road beyond the entrance to the
Hospital. The vote was as follows on roll call:
Ayes: Cummings, Davis, Rodgers, Ruppenthal;
Noes: Byxbee, Cresap, Drysdale, Giffin, Marshall,
Mitchell, Nevis, Simpson.
The amendment was declared lost.
The original motion to accept the annexation proposal in-
cluding Willow Road was then adopted by unanimous vote on roil call.
The City Manager advised that Stanford and City officials
have been working on the sharing of costs for off -site improvements
such as drainage, roads and,utilities, and that a report on this mat
ter will be presented to the Council at its next meeting for approv-
al.
The City Manager reviewed the status of the Hospital plane
and construction program. He advised that Thomas D. Church has been
retained as landscape architect, that E. Todd Wheeler has been re-
tained as hospital consultant, and that Wagner and Martinez have.
been appointed as building consultants to work with the architect
and the staff on building construction and costs.
The City Manager reported that the grading plans have been
completed by.the architect and that bids on grading the site will be
taken. on August 13, 1956. He presented architectural sketches and.
drawingsfor.the Medical Center and the Palo Alto Pavilion,`and ad-
vised that the plans for all the core facilities to be a3hared by Pa-
lo Alto and'.Stanford have been approved with the exception of";the
space for radiology and laboratories; that committees have been
working on the X-ray ,and laboratory problem for some time and have
been unable to reach a satisfactory agreement as to the sharing of.
these services; that the question is holding up final plans and
should be settled as soon as possible.
4n motion of Byxbee and Giffin, it was agreed that the
;.Council would meet as:a.Committee of the Whole on Thursday, July 26,
1956, at 7:30 P.M. to give consideration to the various proposals
which have been made in respect to the design of the radiology. and
laboratory facilities.
Several members of the Council indicated that"they could
482
not attend a meeting on July 26th., It was moved by Drysdale, sec-
onded by Mitchell, that the action just taken be rescinded and that
the meeting of the Committee of the.•Whole on this subject be held on
August 6, 1956. It was pointed out by the City Manager that a delay
of two weeks might work a' hardship on the architect and that the'ra-.
diology and laboratory problem should be resolved sooner if possible.
The•motion to change the meeting date to August 6th was lost by the
following vote on roll call:
Ayes: Drysdale, Mitchell, Navis.
Noes: Byxbee, Cummings, Davis, Giffin, Marshall, Rodgers,.
Ruppenthal.
(Councilmen Cresap and Simpson had left the
meeting during the discussion of the above
item and did not return.)
Investment of Hospital Bond Funds in Bank Debentures
A report was received from Committee No. 3 recommending'
that the Treasurer be authorized to purchase $550,000 Federal Inter-
mediate Credit Bank Debentures, due March 1, 1957, for $551,784::78.,
and $250,000 Federal Intermediate Credit Bank Debentures due April
1, 1957, for $250,494.35, to yield approximately 3 %.
Resolution No. 2757 authorizing the purchase as recommend-
ed was introduced, and on motion of Rodgers and Byxbee, was adopted '
by unanimous vote on roll call.
Pro'ec•t 5 -5, Parking Lots on Sherman Avenue
Resolution No. 2758, calling for sealed proposals for the
construction of parking lots on Sherman Avenue, Lots 4, 5 and 6 in
Project 55-5, off-street parking for the California Avenue District,
was introduced. It was moved by Byxbee, seconded and carried by u-
nanimous vote on roll call that this resolution be adopted.
Abandonment of Easements) St. Mark's Church
Resolution No. 2759 of Intention to abandon street and
public utilities: easements on property of the South Palo Alto Church.
Property, Inc. (St.' Mark's Church), setting hearing on the proposed
abandonment for August 27, 1956, was introduced, and on motion of
Byxbee and Rodgers, was adopted by unanimous vote on roll call.
Amendment to Building Code
A proposed ordinance amending Section 1711 of the Building
Code was accepted for first reading.
(Councilman Ruppenthal left at this time,
11:10 P.M., and was absent for the rest
of the•meeting.)
Stop Signs, Alma and Charleston
Ordinance No. 1701, establishing arterial stop signs on
Alma Street at its intersection with Charleston Road, was given sec-
ond reading, and on motion of Mitchell, duly seconded, was adopted
by unanimous vote of all council members present. (Davis was absent
during thin roll call.)
Change of Street Name
Ordinance No. 1702, changing the name of Louis Road be-
tween Charleston Road and Middlefield Road to Montrose Avenue, was
given second reading, and on motion of Byxbee and Giffin, was adopt-
ec by unanimous vote on roll call.
Amendment to Zoning Ordinance
Ordinance No. 1703, amending Article 12 of the Zoning Or -
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483
dinance to allow paint sway booths in C-3 Districts, was given sec-,
and reading, and on motion of Mitchell and Byxbee, was adopted by
unanimous vote on roll call.
Zone Change•(Arbuckle)
Ordinance No. 1704, rezoning certain properties on Park
Boulevard, Ash Street, Leland, Stanford, Oxford and College Avenues,
from R-1 to R -1:R, was given second reading, and on motion of Mit-
chell and Byxbee, was adopted by unanimous vote on roll call.
Zone Change (Beaudoin)
Ordinance No. 1705, rezoning the property at 2k99 Cowper
Street, corner of Cowper and Marion, part of Lot 11, Block 1, Seale
Subdivision No. 6, from C-1 and 0-A to R-1, was given second reading'
Mr. H. M. Beaudoin owner of the property, spokeinpro-
test to the rezoning and urged that the present commercial zoning:be�
retained. He stated that he has plans to erect a new building on
the property.
The City Manager called attention to the fact that Mr.
Beaudoin had presented plans for a new building several years ago
but had done nothing to date to improve the property.
Reference was made to the hearing held by the Planning
Commission on its own initiative to rezone the property in question
to R-1, and to the fact that many property owners in the zone of in-
terest favor the rezoning.
Mr. Beaudoin stated that the property is at present renter
to the Palo Alto Awning Company for storage of garden furniture.
The City Attorney advised that this use is in violation of the city
ordinances.
On motion of Mitchell and Nevis, Ordinance No. 1705 rezon-
ing the property at 2+99 Cowper Street to R-1 was adopted by unani-
mous vote on roll call.
Amendment to Fire Zone Map
A proposed ordinance amending the Fire Zone Map to change
the fire zone of property at 21199 Cowper Street from Fire Zone No. 2
to Fire Zone No. 3 was accepted for first reading.
Claim for Damages
A report was submitted by the City Attorney on claim filed
by Samuel Catania in the sum of $200.00 for injury sustained by his
son when he slipped on muddy ground on the Jordan Junior High School
playground, advising that in his opinion there is no liability on
the part of the City and recommending that the claim be denied.
On motion of Mitchell. and Drysdale, the City Attorney's rer-
port ..lasaccepted and`the claim denied.
There being no further business to come before the Council,
the meeting was declared adjourned at 11:30 P.M.
APPROVED:
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